Lviv 26 May Lviv will be the heart of tourism annually visited by over 1m travellers, which is 2-3 times more than today, in 5-10 years. The industry of business services will be developing vigorously as well. The number of jobs will double to over 10,000. This has been a part of Lviv economic development strategy devised by the Foundation for Effective Governance together with Monitor Group and in close cooperation with Lviv government.

The Managing Director of the Foundation Nataliya Izosimova said at the strategy presentation that the primary focus is to create and develop clusters of tourism and business services (consultations, database and information management, software services, etc.), which are priorities for the city. This would help achieve the main project goal - to improve economic competitiveness of Lviv.

"First and foremost, it is important to focus on training and development of human resources to be employed in the priority clusters. It means to agree curricula with local business needs, encourage the faculty to provide quality work and assist in development of knowledge, technologies and approaches", Ms Izosimova explained.

Another important goal, in her view, is to build a transparent management system by increasing accountability in the management system and cooperating with the international structures to establish a public control system. Andrew Swart, Partner Monitor Group consultancy, noted in turn that big investment will be needed to put the strategy in practice. "To raise investment, we suggest to set up an Investment Promotion Agency and advise the Lviv government to keep working with the international structures to attract extra funding", said the partner of Monitor Group. Andrew Swart also underlined that success of the strategy largely depends on the government capacity to address priority objectives effectively and engage local business to active cooperation.

Lviv mayor Andrey Sadovyy said the government is set to launch realization of the strategy. According to the mayor, the strategy will position the tourist-open Lviv as a new, untapped and unexplored gem for the travellers willing to see the grandeur of the old Europe and feel actual Ukraine. The strategy of Lviv economic development will help us much to prepare for EURO 2012 as it exposes weaknesses of the city and explains how to improve them. We will make every effort to ensure that Lviv becomes a competitive city with a high standard of living as soon as in a couple of years", - said Andrey Sadovyy.
In May 2009, the Foundation for Effective Governance, Monitor Group and Lviv authorities will launch the second stage of the city economic development project to last about six months. The second stage will introduce in practice the key recommendations made on tourism and business services cluster development, raising investment and training and development of human resources. The activities will be coordinated by dedicated task groups comprising local government and business officials, the Council on Competition, the Executive Committee and the task groups for development of two key clusters.

Project profile

The project for economic development of regions is being implemented by the Foundation for Effective Governance in partnership with international consultancy Monitor Group and in close cooperation with the local governments. The project is being realized in Ukraine for the first time ever.
The prerequisite for project implementation was the analysis of Ukraine's competitiveness carried out by the Foundation in tandem with the World Economic Forum. It included roundtables in regional centres of Ukraine in June-July. Following regional discussions and meetings with local governments, the Foundation and Monitor Group analyzed 27 Ukrainian regions and selected two: Donetsk region for the regional economic development project and Lviv for the city economic development project.

The project of Lviv economic development includes two stages. The first stage lasted around six months and included a systemic and in-depth diagnostics of the city economy; set priorities on major economy development areas; identified and carefully analyzed competitive clusters and investment opportunities; as well as offered the city economic development strategy designed to improve its competitiveness. The second stage will last from three to six months and develop a detailed action plan to raise competitiveness of Lviv and start its practical realization.

Profile
Foundation for Effective Governance
The Foundation for Effective Governance ( www.feg.org.ua) was established in 2007 following initiative of Rinat Akhmetov with a mission to develop and implement projects and programs, which encourage the long-term economic development of the Ukrainian economy. FEG targets to help reach public and political consensus in key areas of the economic reform programs.
To reach the objective the Foundation involves the leading Ukrainian and international experts with impeccable reputation. The International Advisory Board, which includes prominent public and political figures from different countries, ensures the Foundation’s independence. Among its board members are former Canadian Prime Minister Kim Campbell; former U.S. Senator Lincoln Chafee; former president of the National Bank of HungaryGyörgy Surányi; and Managing Director and Head of Morgan Stanley’s Office in Kiev Ihor Mitiukov. The International Advisory Board takes an active part in building the Foundation’s strategy, selecting the priority projects, and representing FEG both inside and outside Ukraine

Monitor Group
International Consulting Company Monitor Group (www.monitor.com) works with the world’s leading corporations, governments and social sector organizations to drive growth on the issues that are most important to them. The firm has extensive expertise in the projects targeted at improving regional economic competitiveness and has worked on more than 175 projects in 58 countries over the last 20 years to analyze and develop economic development strategies in regions and countries around the world.
Monitor Group was founded in 1983 by six entrepreneurs, including Harvard Business School Professor Michael Porter. Headquartered in Cambridge, Massachusetts, the firm employs over 1,500 people in 22 countries worldwide.

Dear colleagues, for any additional information please contact Inna Gordienko, PR-Director of the Foundation for Effective Governance:
Tel.: (044) 501-41-07
Mob: (095) 270-59-60
e-mail: igordienko@feg.org.ua